Primestar, a consortium of the nation's five largest cable TV companies, would have gained control of one of just three satellites that can beam hundreds of television channels into homes and businesses via satellite dishes the size of a pizza. The other two satellites are controlled by Echostar (DISH)
NWS, -1.47%
and DirecTV (GMH)
NWS, -1.47%
.

``Direct broadcast satellite presents the first real threat to the cable monopoly,'' said Assistant Attorney General Joel I. Klein, head of the antitrust division.

The government lawsuit said the deal would allow the cable companies that own Primestar -- Tele-Communications Inc. (TCOMA)
tcoma
; Time Warner Inc. (TWX)
TWX, -0.28%
; Comcast Corp. (CMCSA)
CMCSA, -0.26%
; Cox Enterprises Inc. (COX)
COX, +6.02%
, and US West/MediaOne (UMG)
UMG, -68.00%
-- to protect their monopolies and keep out new competitors using the satellite technology. TCI and Time Warner are the largest and second largest cable companies in the nation. Together, the five companies have 60 percent of U.S. cable customers, Klein said.

"Cable is one of the most powerful and durable monopolies in the United States," Klein said. "The cable companies are the one group that has no interest in ending the cable monopoly."

"It's a very scarce resource with an absolute barrier to entry," Klein said of the satellite slots, which are limited by international treaty.

The Federal Communications Commission also is currently reviewing the deal.

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